WABC Westamerica Bancorporation

Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the second quarter 2022 of $25.3 million and diluted earnings per common share (“EPS”) of $0.94. Second quarter 2022 results compare to net income of $22.6 million and EPS of $0.84 for the first quarter 2022.

“Westamerica’s second quarter 2022 results benefited from the Company’s variable-rate bonds, cash and loans, a valuable deposit base with ninety-eight percent of deposits represented by checking and savings deposits, and well controlled operating expenses. Credit quality remained solid with nonperforming loans of $861 thousand at June 30, 2022,” said Chairman, President and CEO David Payne. “Second quarter 2022 results generated an annualized 12.9% return on average common equity. Shareholders were paid a $0.42 per common share dividend during the second quarter 2022,” concluded Payne.

Net interest income on a fully-taxable equivalent (FTE) basis was $48.0 million for the second quarter 2022, compared to $43.8 million for the first quarter 2022. Interest income on Paycheck Protection Program (“PPP”) loans was $645 thousand for the second quarter 2022, compared to $849 thousand first quarter 2022.

Variable rate assets at June 30, 2022 included $1.6 billion in collateralized loan obligations for which interest rates reset quarterly, and $640 million in interest-bearing cash balances for which the interest rate changes concurrently with Federal Open Market Committee adjustments to the federal funds rate.

At June 30, 2022, nonperforming loans totaled $861 thousand and the allowance for credit losses on loans was $22.3 million.

Noninterest income for the second quarter 2022 totaled $11.3 million, compared to noninterest income for the first quarter 2022 of $11.6 million. Noninterest income for the first quarter 2022 included a $1.2 million reconciling payment from a payments network. Merchant card processing fees increased $751 thousand from the first quarter 2022 to the second quarter 2022.

Noninterest expenses for the second quarter 2022 were $24.6 million compared to $24.9 million for the first quarter 2022; the decline in noninterest expenses was primarily due to lower personnel salaries and benefits.

The fully-tax equivalent (FTE) tax rate for the second quarter 2022 was 27.0%, compared to 25.9% for the first quarter 2022; the higher second quarter tax rate is attributable to the increase in income before taxes without a proportional increase in tax preference items such as tax-exempt interest and tax credits.

Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
	Westamerica Bancorporation
	1108 Fifth Avenue, San Rafael, CA 94901
	Robert A. Thorson – SVP & Treasurer
	707-863-6840
	investments@westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company’s most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2021 filed on Form 10-K and quarterly report for the quarter ended March 31, 2022 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company’s business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

	Public Information July 21, 2022
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
June 30, 2022
1. Net Income Summary.
	(in thousands except per-share amounts)
							%
	Q2'2022			Q2'2021			Change		Q1'2022
Net Interest and Fee Income (FTE)	$	48,033		$	44,499		7.9	%	$	43,807
Provision for Credit Losses		-			-		n/m			-
Noninterest Income (1)		11,264			11,032		2.1	%		11,576
Noninterest Expense		24,629			24,291		1.4	%		24,875
Income Before Taxes (FTE)		34,668			31,240		11.0	%		30,508
Income Tax Provision (FTE)		9,354			8,661		8.0	%		7,892
Net Income	$	25,314		$	22,579		12.1	%	$	22,616
Average Common Shares Outstanding		26,889			26,865		0.1	%		26,870
Diluted Average Common Shares		26,901			26,887		0.1	%		26,885
Operating Ratios:
Basic Earnings Per Common Share	$	0.94		$	0.84		11.9	%	$	0.84
Diluted Earnings Per Common Share		0.94			0.84		11.9	%		0.84
Return On Assets (a)		1.37	%		1.29	%				1.24	%
Return On Common Equity (a)		12.9	%		12.2	%				11.8	%
Net Interest Margin (FTE) (a)		2.74	%		2.70	%				2.51	%
Efficiency Ratio (FTE)		41.5	%		43.7	%				44.9	%
Dividends Paid Per Common Share	$	0.42		$	0.41		2.4	%	$	0.42
Common Dividend Payout Ratio		45	%		49	%				50	%
							%
	6/30'22YTD			6/30'21YTD			Change
Net Interest and Fee Income (FTE)	$	91,840		$	87,082		5.5	%
Provision for Credit Losses		-			-		n/m
Noninterest Income (1)		22,840			21,221		7.6	%
Noninterest Expense		49,504			49,197		0.6	%
Income Before Taxes (FTE)		65,176			59,106		10.3	%
Income Tax Provision (FTE)		17,246			16,380		5.3	%
Net Income	$	47,930		$	42,726		12.2	%
Average Common Shares Outstanding		26,880			26,843		0.1	%
Diluted Average Common Shares		26,893			26,865		0.1	%
Operating Ratios:
Basic Earnings Per Common Share	$	1.78		$	1.59		11.9	%
Diluted Earnings Per Common Share		1.78			1.59		11.9	%
Return On Assets		1.30	%		1.26	%
Return On Common Equity		12.4	%		11.6	%
Net Interest Margin (FTE)		2.63	%		2.72	%
Efficiency Ratio (FTE)		43.2	%		45.4	%
Dividends Paid Per Common Share	$	0.84		$	0.82		2.4	%
Common Dividend Payout Ratio		47	%		52	%
2. Net Interest Income.
	(dollars in thousands)
							%
	Q2'2022			Q2'2021			Change		Q1'2022
Interest and Fee Income (FTE)	$	48,516		$	44,983		7.9	%	$	44,287
Interest Expense		483			484		-0.2	%		480
Net Interest and Fee Income (FTE)	$	48,033		$	44,499		7.9	%	$	43,807
Average Earning Assets	$	7,000,862		$	6,603,343		6.0	%	$	6,998,234
Average Interest-
Bearing Liabilities		3,549,140			3,298,221		7.6	%		3,546,146
Yield on Earning Assets (FTE) (a)		2.77	%		2.73	%				2.54	%
Cost of Funds (a)		0.03	%		0.03	%				0.03	%
Net Interest Margin (FTE) (a)		2.74	%		2.70	%				2.51	%
Interest Expense/
Interest-Bearing Liabilities (a)		0.05	%		0.06	%				0.05	%
Net Interest Spread (FTE) (a)		2.72	%		2.67	%				2.49	%
							%
	6/30'22YTD			6/30'21YTD			Change
Interest and Fee Income (FTE)	$	92,803		$	88,041		5.4	%
Interest Expense		963			959		0.4	%
Net Interest and Fee Income (FTE)	$	91,840		$	87,082		5.5	%
Average Earning Assets	$	6,999,556		$	6,424,973		8.9	%
Average Interest-
Bearing Liabilities		3,547,651			3,214,688		10.4	%
Yield on Earning Assets (FTE)		2.66	%		2.75	%
Cost of Funds		0.03	%		0.03	%
Net Interest Margin (FTE)		2.63	%		2.72	%
Interest Expense/
Interest-Bearing Liabilities		0.05	%		0.06	%
Net Interest Spread (FTE)		2.61	%		2.69	%
3. Loans & Other Earning Assets.
	(average volume, dollars in thousands)
							%
	Q2'2022			Q2'2021			Change		Q1'2022
Total Assets	$	7,420,069		$	7,004,695		5.9	%	$	7,406,321
Total Earning Assets		7,000,862			6,603,343		6.0	%		6,998,234
Total Loans		1,009,633			1,257,087		-19.7	%		1,029,724
Total Commercial Loans		202,585			413,797		-51.0	%		207,901
Paycheck Protection Program (PPP) Loans		20,997			207,515		-89.9	%		35,871
Commercial Loans		181,588			206,282		-12.0	%		172,030
Commercial RE Loans		508,003			546,470		-7.0	%		524,040
Consumer Loans		299,045			296,820		0.7	%		297,783
Total Investment Securities		5,008,929			4,394,169		14.0	%		4,947,846
Debt Securities Available For Sale		4,721,083			3,953,016		19.4	%		4,655,983
Debt Securities Held To Maturity		287,846			441,153		-34.8	%		291,863
Total Interest-Bearing Cash		982,300			952,087		3.2	%		1,020,664
Loans/Deposits		15.7	%		20.7	%				16.1	%
							%
	6/30'22YTD			6/30'21YTD			Change
Total Assets	$	7,413,233		$	6,828,409		8.6	%
Total Earning Assets		6,999,556			6,424,973		8.9	%
Total Loans		1,019,623			1,254,328		-18.7	%
Total Commercial Loans		205,228			404,685		-49.3	%
PPP Loans		28,393			198,294		-85.7	%
Commercial Loans		176,835			206,391		-14.3	%
Commercial RE Loans		515,977			552,795		-6.7	%
Consumer Loans		298,418			296,848		0.5	%
Total Investment Securities		4,978,557			4,417,267		12.7	%
Debt Securities Available For Sale		4,688,714			3,950,298		18.7	%
Debt Securities Held To Maturity		289,843			466,969		-37.9	%
Total Interest-Bearing Cash		1,001,376			753,378		32.9	%
Loans/Deposits		15.9	%		21.2	%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
	(average volume, dollars in thousands)
							%
	Q2'2022			Q2'2021			Change		Q1'2022
Total Deposits	$	6,424,202		$	6,074,730		5.8	%	$	6,393,458
Noninterest Demand		2,998,360			2,888,259		3.8	%		3,005,065
Interest-Bearing Transaction		1,298,665			1,208,584		7.5	%		1,265,100
Savings		1,985,325			1,822,625		8.9	%		1,980,092
Time greater than $100K		63,790			70,750		-9.8	%		64,172
Time less than $100K		78,062			84,512		-7.6	%		79,029
Total Short-Term Borrowings		123,298			111,750		10.3	%		157,753
Shareholders' Equity		788,078			744,746		5.8	%		776,225
Demand Deposits/
Total Deposits		46.7	%		47.5	%				47.0	%
Transaction & Savings
Deposits / Total Deposits		97.8	%		97.4	%				97.8	%
							%
	6/30'22YTD			6/30'21YTD			Change
Total Deposits	$	6,408,915		$	5,912,303		8.4	%
Noninterest Demand		3,001,694			2,801,428		7.1	%
Interest-Bearing Transaction		1,281,975			1,169,888		9.6	%
Savings		1,982,723			1,784,929		11.1	%
Time greater than $100K		63,980			70,994		-9.9	%
Time less than $100K		78,543			85,064		-7.7	%
Total Short-Term Borrowings		140,430			103,707		35.4	%
Other Borrowed Funds		-			106		-100.0	%
Shareholders' Equity		782,184			740,147		5.7	%
Demand Deposits/
Total Deposits		46.8	%		47.4	%
Transaction & Savings
Deposits / Total Deposits		97.8	%		97.4	%
5. Interest Yields Earned & Rates Paid.
	(dollars in thousands)
	Q2'2022
	Average			Income/			Yield (a) /
	Volume			Expense			Rate (a)
Interest & Fee Income Earned
Total Earning Assets (FTE)	$	7,000,862		$	48,516		2.77	%
Total Loans (FTE)		1,009,633			12,426		4.94	%
Total Commercial Loans (FTE)		202,585			2,716		5.38	%
PPP Loans		20,997			645		12.32	%
Commercial Loans (FTE)		181,588			2,071		4.57	%
Commercial RE Loans		508,003			6,192		4.89	%
Consumer Loans		299,045			3,518		4.72	%
Total Investments (FTE)		5,008,929			34,088		2.72	%
Total Debt Securities Available For Sale (FTE)		4,721,083			32,059		2.72	%
Corporate Securities		2,589,490			17,857		2.76	%
Collateralized Loan Obligations		1,610,811			10,572		2.60	%
Agency Mortgage Backed Securities		357,727			2,049		2.29	%
Securities OF U.S. Government sponsored entities		59,892			533		3.56	%
Obligations of States and Political Subdivisions (FTE)		88,829			682		3.07	%
Other Debt Securities Available For Sale (FTE)		14,334			366		10.23	%
Total Debt Securities Held To Maturity (FTE)		287,846			2,029		2.82	%
Agency Mortgage Backed Securities		128,319			595		1.85	%
Corporate Securities		17,749			202		4.56	%
Obligations of States and Political Subdivisions (FTE)		141,778			1,232		3.48	%
Total Interest-Bearing Cash		982,300			2,002		0.81	%
Interest Expense Paid
Total Earning Assets		7,000,862			483		0.03	%
Total Interest-Bearing Liabilities		3,549,140			483		0.05	%
Total Interest-Bearing Deposits		3,425,842			461		0.05	%
Interest-Bearing Transaction		1,298,665			91		0.03	%
Savings		1,985,325			288		0.06	%
Time less than $100K		78,062			42		0.22	%
Time greater than $100K		63,790			40		0.25	%
Total Short-Term Borrowings		123,298			22		0.07	%
Net Interest Income and
Margin (FTE)				$	48,033		2.74	%
	Q2'2021
	Average			Income/			Yield (a) /
	Volume			Expense			Rate (a)
Interest & Fee Income Earned
Total Earning Assets (FTE)	$	6,603,343		$	44,983		2.73	%
Total Loans (FTE)		1,257,087			15,168		4.84	%
Total Commercial Loans (FTE)		413,797			4,763		4.62	%
PPP Loans		207,515			2,713		5.25	%
Commercial Loans (FTE)		206,282			2,050		3.98	%
Commercial RE Loans		546,470			6,994		5.13	%
Consumer Loans		296,820			3,411		4.61	%
Total Investments (FTE)		4,394,169			29,556		2.69	%
Total Debt Securities Available For Sale (FTE)		3,953,016			26,779		2.71	%
Corporate Securities		2,289,882			17,564		3.07	%
Collateralized Loan Obligations		1,020,187			5,646		2.19	%
Agency Mortgage Backed Securities		526,958			2,409		1.83	%
Securities OF U.S. Government sponsored entities		0			0		0.00	%
Obligations of States and Political Subdivisions (FTE)		101,619			812		3.19	%
Other Debt Securities Available For Sale (FTE)		14,370			348		9.70	%
Total Debt Securities Held To Maturity (FTE)		441,153			2,777		2.52	%
Agency Mortgage Backed Securities		201,703			793		1.57	%
Corporate Securities		0			0		0.00	%
Obligations of States and Political Subdivisions (FTE)		239,450			1,984		3.32	%
Total Interest-Bearing Cash		952,087			259		0.11	%
Interest Expense Paid
Total Earning Assets		6,603,343			484		0.03	%
Total Interest-Bearing Liabilities		3,298,221			484		0.06	%
Total Interest-Bearing Deposits		3,186,471			466		0.06	%
Interest-Bearing Transaction		1,208,584			93		0.03	%
Savings		1,822,625			263		0.06	%
Time less than $100K		84,512			42		0.20	%
Time greater than $100K		70,750			68		0.39	%
Total Short-Term Borrowings		111,750			18		0.07	%
Net Interest Income and
Margin (FTE)				$	44,499		2.70	%
6. Noninterest Income.
	(dollars in thousands except per-share amounts)
							%
	Q2'2022			Q2'2021			Change		Q1'2022
Service Charges on Deposits	$	3,687		$	3,235		14.0	%	$	3,582
Merchant Processing Services		3,374			3,279		2.9	%		2,623
Debit Card Fees (1)		1,709			1,791		-4.6	%		2,872
Trust Fees		809			827		-2.2	%		843
ATM Processing Fees		469			618		-24.1	%		451
Other Service Fees		480			491		-2.3	%		449
Financial Services Commissions		118			95		24.2	%		117
Securities Gains		-			34		n/m			-
Other Noninterest Income		618			662		-6.6	%		639
Total Noninterest Income	$	11,264		$	11,032		2.1	%	$	11,576
Total Revenue (FTE)	$	59,297		$	55,531		6.8	%	$	55,383
Noninterest Income/Revenue (FTE)		19.0	%		19.9	%				20.9	%
Service Charges/Avg. Deposits (a)		0.23	%		0.21	%				0.23	%
Total Revenues (FTE) Per Avg.
Common Share (a)	$	8.85		$	8.29		6.7	%	$	8.36
Life Insurance Gains
							%
	6/30'22YTD			6/30'21YTD			Change
Service Charges on Deposits	$	7,269		$	6,539		11.2	%
Merchant Processing Services		5,997			5,839		2.7	%
Debit Card Fees (1)		4,581			3,392		35.1	%
Trust Fees		1,652			1,628		1.5	%
ATM Processing Fees		920			1,219		-24.6	%
Other Service Fees		929			960		-3.2	%
Financial Services Commissions		235			165		42.4	%
Securities Gains		-			34		n/m
Other Noninterest Income		1,257			1,445		-13.0	%
Total Noninterest Income	$	22,840		$	21,221		7.6	%
Total Revenue (FTE)	$	114,680		$	108,303		5.9	%
Noninterest Income/Revenue (FTE)		19.9	%		19.6	%
Service Charges/Avg. Deposits		0.23	%		0.22	%
Total Revenues (FTE) Per Avg./
Common Share	$	8.60		$	8.14		5.7	%
7. Noninterest Expense.
	(dollars in thousands)
							%
	Q2'2022			Q2'2021			Change		Q1'2022
Salaries & Benefits	$	11,412		$	12,097		-5.7	%	$	11,920
Occupancy and Equipment		4,856			4,808		1.0	%		4,746
Outsourced Data Processing		2,423			2,425		-0.1	%		2,437
Professional Fees		736			830		-11.3	%		736
Courier Service		661			567		16.6	%		582
Amortization of
Identifiable Intangibles		64			68		-5.9	%		64
Other Noninterest Expense		4,477			3,496		28.1	%		4,390
Total Noninterest Expense	$	24,629		$	24,291		1.4	%	$	24,875
Noninterest Expense/
Avg. Earning Assets (a)		1.41	%		1.48	%				1.44	%
Noninterest Expense/Revenues (FTE)		41.5	%		43.7	%				44.9	%
							%
	6/30'22YTD			6/30'21YTD			Change
Salaries & Benefits	$	23,332		$	24,762		-5.8	%
Occupancy and Equipment		9,602			9,688		-0.9	%
Outsourced Data Processing		4,860			4,815		0.9	%
Professional Fees		1,472			1,772		-16.9	%
Courier Service		1,243			1,071		16.1	%
Amortization of
Identifiable Intangibles		128			137		-6.6	%
Other Noninterest Expense		8,867			6,952		27.5	%
Total Noninterest Expense	$	49,504		$	49,197		0.6	%
Noninterest Expense/
Avg. Earning Assets		1.43	%		1.54	%
Noninterest Expense/Revenues (FTE)		43.2	%		45.4	%
8. Allowance for Credit Losses.
	(dollars in thousands)
							%
	Q2'2022			Q2'2021			Change		Q1'2022
Average Total Loans	$	1,009,633		$	1,257,087		-19.7	%	$	1,029,724
Beginning of Period Allowance for
Credit Losses on Loans (ACLL)	$	22,925		$	23,483		-2.4	%	$	23,514
Provision for Credit Losses		-			-		n/m			-
Net ACLL (Losses) Recoveries		(612	)		254		-340.9	%		(589	)
End of Period ACLL	$	22,313		$	23,737		-6.0	%	$	22,925
Gross ACLL Recoveries /
Gross ACLL Losses		57	%		176	%				51	%
Net ACLL Losses (Recoveries) /
Avg. Total Loans (a)		0.24	%		-0.08	%				0.23	%
							%
	6/30'22YTD			6/30'21YTD			Change
Average Total Loans	$	1,019,623		$	1,254,328		-18.7	%
Beginning of Period ACLL	$	23,514		$	23,854		-1.4	%
Provision for Credit Losses		-			-		n/m
Net ACLL Losses		(1,201	)		(117	)	926.5	%
End of Period ACLL	$	22,313		$	23,737		-6.0	%
Gross ACLL Recoveries /
Gross ACLL Losses		54	%		91	%
Net ACLL Losses /
Avg. Total Loans		0.24	%		0.02	%
	(dollars in thousands)
							%
	6/30/22			6/30/21			Change		3/31/22
Allowance for Credit Losses on Loans	$	22,313		$	23,737		-6.0	%	$	22,925
Allowance for Credit Losses on
HTM Securities		7			9		-22.3	%		7
Total Allowance for Credit Losses	$	22,320		$	23,746		-6.0	%	$	22,932
Allowance for Unfunded
Credit Commitments	$	201		$	101		99.3	%	$	201
9. Credit Quality.
	(dollars in thousands)
							%
	6/30/22			6/30/21			Change		3/31/22
Nonperforming Loans:
Nonperforming Nonaccrual	$	12		$	652		-98.2	%	$	63
Performing Nonaccrual		235			3,564		-93.4	%		421
Total Nonaccrual Loans		247			4,216		-94.1	%		484
90+ Days Past Due Accruing Loans		614			167		267.7	%		431
Total Nonperforming Loans	$	861		$	4,383		-80.4	%	$	915
Total Loans Outstanding	$	999,768		$	1,194,834		-16.3	%	$	1,002,514
Total Assets		7,222,405			7,147,779		1.0	%		7,306,417
Loans:
Allowance for Credit Losses on Loans	$	22,313		$	23,737		-6.0	%	$	22,925
Allowance for Credit Losses on Loans /
Loans		2.23	%		1.99	%				2.29	%
Nonperforming Loans/Total Loans		0.09	%		0.37	%				0.09	%
10. Capital.
	(in thousands, except per-share amounts)
							%
	6/30/22			6/30/21			Change		3/31/22
Shareholders' Equity	$	617,126		$	842,196		-26.7	%	$	701,744
Total Assets		7,222,405			7,147,779		1.0	%		7,306,417
Shareholders' Equity/
Total Assets		8.54	%		11.78	%				9.60	%
Shareholders' Equity/
Total Loans		61.73	%		70.49	%				70.00	%
Tangible Common Equity Ratio		6.97	%		10.24	%				8.06	%
Common Shares Outstanding		26,896			26,865		0.1	%		26,883
Common Equity Per Share	$	22.94		$	31.35		-26.8	%	$	26.10
Market Value Per Common Share		55.66			58.03		-4.1	%		60.50
	(shares in thousands)
							%
	Q2'2022			Q2'2021			Change		Q1'2022
Share Repurchase Programs:
Total Shares Repurchased		-			-		n/m			3
Average Repurchase Price	$	-		$	-		n/m		$	58.66
Net Shares (Issued)		(13	)		(1	)	n/m			(17	)
							%
	6/30'22YTD			6/30'21YTD			Change
Total Shares Repurchased		3			4		n/m
Average Repurchase Price	$	58.66		$	61.09		n/m
Net Shares (Issued)		(30	)		(58	)	n/m
11. Period-End Balance Sheets.
	(unaudited, dollars in thousands)
							%
	6/30/22			6/30/21			Change		3/31/22
Assets:
Cash and Due from Banks	$	753,293		$	939,929		-19.9	%	$	1,037,593
Equity Securities		-			-		n/m			-
Debt Securities Available For Sale
Corporate Securities		2,296,853			2,596,850		-11.6	%		2,547,118
Collateralized Loan Obligations		1,601,333			1,092,112		46.6	%		1,616,584
Agency Mortgage Backed Securities		331,425			510,460		-35.1	%		363,181
Securities OF U.S. Government sponsored entities		290,725			-		n/m			-
Obligations of States and Political Subdivisions		86,676			104,603		-17.1	%		89,595
Other Debt Securities Available For Sale		102			137		-25.6	%		110
Total Debt Securities Available For Sale		4,607,114			4,304,162		7.0	%		4,616,588
Debt Securities Held To Maturity
Agency Mortgage Backed Securities		121,810			187,901		-35.2	%		133,754
Corporate Securities		181,316			-		n/m			-
Obligations of States and Political Subdivisions (2)		139,228			226,512		-38.5	%		146,766
Total Debt Securities Held To Maturity (2)		442,354			414,413		6.7	%		280,520
Loans		999,768			1,194,834		-16.3	%		1,002,514
Allowance For Credit Losses on Loans		(22,313	)		(23,737	)	-6.0	%		(22,925	)
Total Loans, net		977,455			1,171,097		-16.5	%		979,589
Premises and Equipment, net		30,309			32,080		-5.5	%		30,626
Identifiable Intangibles, net		707			967		-26.9	%		771
Goodwill		121,673			121,673		0.0	%		121,673
Other Assets		289,500			163,458		77.1	%		239,057
Total Assets	$	7,222,405		$	7,147,779		1.0	%	$	7,306,417
Liabilities and Shareholders' Equity:
Deposits:
Noninterest-Bearing	$	2,987,725		$	2,872,920		4.0	%	$	3,000,268
Interest-Bearing Transaction		1,303,700			1,200,634		8.6	%		1,279,165
Savings		1,983,713			1,849,258		7.3	%		1,984,719
Time		140,453			153,577		-8.5	%		141,722
Total Deposits		6,415,591			6,076,389		5.6	%		6,405,874
Short-Term Borrowed Funds		118,167			90,043		31.2	%		124,442
Other Liabilities		71,521			139,151		-48.6	%		74,357
Total Liabilities		6,605,279			6,305,583		4.8	%		6,604,673
Shareholders' Equity:
Common Equity:
Paid-In Capital		473,555			470,365		0.7	%		472,470
Accumulated Other
Comprehensive (Loss) Income		(188,025	)		86,921		n/m			(88,300	)
Retained Earnings		331,596			284,910		16.4	%		317,574
Total Shareholders' Equity		617,126			842,196		-26.7	%		701,744
Total Liabilities and
Shareholders' Equity	$	7,222,405		$	7,147,779		1.0	%	$	7,306,417
12. Income Statements.
	(unaudited, in thousands except per-share amounts)
							%
	Q2'2022			Q2'2021			Change		Q1'2022
Interest & Fee Income:
Loans	$	12,331		$	15,064		-18.1	%	$	12,942
Equity Securities		129			110		17.3	%		128
Debt Securities Available For Sale		31,764			26,481		19.9	%		28,566
Debt Securities Held To Maturity		1,771			2,362		-25.0	%		1,644
Interest-Bearing Cash		2,002			259		673.0	%		479
Total Interest & Fee Income		47,997			44,276		8.4	%		43,759
Interest Expense:
Transaction Deposits		91			93		-2.2	%		88
Savings Deposits		288			263		9.5	%		283
Time Deposits		82			110		-25.5	%		81
Short-Term Borrowed Funds		22			18		22.2	%		28
Other Borrowed Funds		-			-		n/m			-
Total Interest Expense		483			484		-0.2	%		480
Net Interest Income		47,514			43,792		8.5	%		43,279
Provision for Credit Losses		-			-		n/m			-
Noninterest Income:
Service Charges		3,687			3,235		14.0	%		3,582
Merchant Processing Services		3,374			3,279		2.9	%		2,623
Debit Card Fees (1)		1,709			1,791		-4.6	%		2,872
Trust Fees		809			827		-2.2	%		843
ATM Processing Fees		469			618		-24.1	%		451
Other Service Fees		480			491		-2.3	%		449
Financial Services Commissions		118			95		24.2	%		117
Securities Gains		-			34		n/m			-
Other Noninterest Income		618			662		-6.6	%		639
Total Noninterest Income		11,264			11,032		2.1	%		11,576
Noninterest Expense:
Salaries and Benefits		11,412			12,097		-5.7	%		11,920
Occupancy and Equipment		4,856			4,808		1.0	%		4,746
Outsourced Data Processing		2,423			2,425		-0.1	%		2,437
Professional Fees		736			830		-11.3	%		736
Courier Service		661			567		16.6	%		582
Amortization of Identifiable Intangibles		64			68		-5.9	%		64
Other Noninterest Expense		4,477			3,496		28.1	%		4,390
Total Noninterest Expense		24,629			24,291		1.4	%		24,875
Income Before Income Taxes		34,149			30,533		11.8	%		29,980
Income Tax Provision		8,835			7,954		11.1	%		7,364
Net Income	$	25,314		$	22,579		12.1	%	$	22,616
Average Common Shares Outstanding		26,889			26,865		0.1	%		26,870
Diluted Common Shares Outstanding		26,901			26,887		0.1	%		26,885
Per Common Share Data:
Basic Earnings	$	0.94		$	0.84		11.9	%	$	0.84
Diluted Earnings		0.94			0.84		11.9	%		0.84
Dividends Paid		0.42			0.41		2.4	%		0.42
							%
	6/30'22YTD			6/30'21YTD			Change
Interest & Fee Income:
Loans	$	25,273		$	29,645		-14.7	%
Equity Securities		257			220		16.8	%
Debt Securities Available For Sale		60,330			51,370		17.4	%
Debt Securities Held To Maturity		3,415			4,960		-31.2	%
Interest-Bearing Cash		2,481			397		524.9	%
Total Interest & Fee Income		91,756			86,592		6.0	%
Interest Expense:
Transaction Deposits		179			182		-1.6	%
Savings Deposits		571			513		11.3	%
Time Deposits		163			230		-29.1	%
Short-Term Borrowed Funds		50			34		47.1	%
Total Interest Expense		963			959		0.4	%
Net Interest Income		90,793			85,633		6.0	%
Provision for Credit Losses		-			-		n/m
Noninterest Income:
Service Charges		7,269			6,539		11.2	%
Merchant Processing Services		5,997			5,839		2.7	%
Debit Card Fees (1)		4,581			3,392		35.1	%
Trust Fees		1,652			1,628		1.5	%
ATM Processing Fees		920			1,219		-24.6	%
Other Service Fees		929			960		-3.2	%
Financial Services Commissions		235			165		42.4	%
Securities Gains		-			34		n/m
Other Operating		1,257			1,445		-13.0	%
Total Noninterest Income		22,840			21,221		7.6	%
Noninterest Expense:
Salaries and Benefits		23,332			24,762		-5.8	%
Occupancy and Equipment		9,602			9,688		-0.9	%
Outsourced Data Processing		4,860			4,815		0.9	%
Professional Fees		1,472			1,772		-16.9	%
Courier Service		1,243			1,071		16.1	%
Amortization of Identifiable Intangibles		128			137		-6.6	%
Other Operating		8,867			6,952		27.5	%
Total Noninterest Expense		49,504			49,197		0.6	%
Income Before Income Taxes		64,129			57,657		11.2	%
Income Tax Provision		16,199			14,931		8.5	%
Net Income	$	47,930		$	42,726		12.2	%
Average Common Shares Outstanding		26,880			26,843		0.1	%
Diluted Common Shares Outstanding		26,893			26,865		0.1	%
Per Common Share Data:
Basic Earnings	$	1.78		$	1.59		11.9	%
Diluted Earnings		1.78			1.59		11.9	%
Dividends Paid		0.84			0.82		2.4	%
Footnotes and Abbreviations:
(1) The Company received a $1.2 million reconciling payment from a payments network in the first quarter 2022.
(2) Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are net of related reserve for expected credit losses of $7 thousand at June 30, 2022 and March 31, 2022, and $9 thousand at June 30, 2021.
(FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a relatively large portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis.
(a) Annualized
Certain amounts in prior periods have been reclassified to conform to the current presentation.